Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — FY2022 Earnings Presentation
87 slides from Sirius Real Estate's earnings presentation, Mar 31, 2022
Slide 1: Year End Results Presentation
YEAR END RESULTS PRESENTATION 31ST MAR 2022 www.siriusfacilities.com
Slide 2: Leading Owner of Business Parks, Industrial Complexes & Out-Of-Town Offices
Leading Owner of Business Parks, Industrial Complexes & Out-Of-Town offices in Germany & the UK 2 Mar 2022 Year End Results
Slide 3: About Sirius
About Sirius 3 1 Leading owner and operator Fully integrated operating Market capitalisation of over of business parks, industrial complexes & platforms with employees in over 140 €1.8bn (£1.5 bn) out of town offices in Germany & the UK locations across Germany & the UK UK REIT Status * 1.5x covered
Slide 4: About Germany
About Germany 4 1 Economy spread across several Well diversified economy The “Mittelstand” large autonomous markets Machinery, automotive, The SME market makes up over 50% of the German Frankfurt, Berlin, Munich, Hamburg, chemical, medical, economy in terms of both employment & output; Dusseldorf, C
Slide 5: About UK
About UK 5 1 Favourable sector dynamics Strong rental growth potential Market synergies UK flexible workspace market poised for High levels of market fragmentation and Industrial/out of town office market in the rapid growth post-pandemic with enquiry chronic supply constraints offer potential UK pr
Slide 6: Highlights
Highlights 20.0% Total Accounting Return (2021: 19.5%) | 16.1% Increase in Full Year Dividend (2021: 3.80c) 6 PBT: €168.9m | +3.2% (2021: €163.7m) NAV per share: 102.04c | +15.5% (2021: 88.31c) +22.5% 2.37c 4.41c FFO of €74.6m (2021: €60.9m) 19.7% increase in H2 dividend 16.1% increase in full year
Slide 7: Consolidated Income Statement - Group
Consolidated Income Statement - Group 7 Mar 22 Mar 21 Movement €m €m % €m Rental Income 122.8 93.8 +31% 29.0 Titanium income 6.7 5.7 1.0 Service charge irrecoverable costs (3.8) (4.2) 0.4 Non-recoverable maintenance (4.6) (4.1) (0.5) Net Operating Income 121.1 91.2 +33% 29.9 Corporate costs and over
Slide 8: Earnings & Dividend per share
Earnings & Dividend per share 8 Cents 13.48 6.44 (2.58) 11.02 4.71 (0.99) (1.65) (0.58) (0.4) 6.79 (0.21) 0.16 (0.52) 3.14 6,39 5.84 2.93 5.61 5.87 5.63 3.09 4.41 3.80 2.04 Note: All items in the chart above are calculated on the weighted average number of shares in issue during the period Mar 2022
Slide 9: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 9 Mar 22 Mar 21 Movement €m €m % €m Assets Investment properties (owned assets) 2,088.7 1,347.2 55% 741.5 Investment properties (leased assets) 25.1 15.0 67% 10.1 Investment in associate 68.4 60.4 13% 8.0 Plant and equipment 9.8 9.2* 6% 0.6 Trade and othe
Slide 10: Adjusted NAV per share growth
Adjusted NAV per share growth 9.90 10 0.26 3.44 (3.83) 3.44 (3.83) 9.12 9.12 108.51 (1.23) (1.24) 108.51 107.28 107.28 81.54 (1.79) 4.86 5.83 5.83 (1.78) 98.80 97.02 2.89 (0.95) 93.79 (4.86) (4.86) 4.76 93.79 93.79 4.76 Mar 2022 Year End Results * Adjusting items includes property valuation gains re
Slide 11: Embedding ESG Into Our Future
Embedding ESG Into Our Future Environmental & Social 11 ▪ Significant progress in embedding ESG into the business and strategy, with materiality and economic sustainability at heart ▪ Carbon reduction plans in action and detailed analysis towards Group Net Zero pathway underway ▪ Increased renewable
Slide 12: Embedding ESG Into Our Future
Embedding ESG Into Our Future Governance & BizSpace 12 ▪ ESG governance overseen by Sustainability and Ethics Committee, reporting to the Board ▪ Integration of BizSpace ESG programme on track ▪ Review of EPCs linking to decarbonisation programme ▪ 20% of portfolio analysed with complete full review
Slide 13: Organic Growth – Germany
Organic Growth – Germany 13 Site Mar 22 Mar 21 Change Rent Roll €113.7m €96.5m* 17.8% Rent Roll (Disposals) - (€0.7m) - - Rent Roll (Acquisitions) €11.0m €2.8m - - Rent Roll (LFL) €102.7m €96.5m* 6.4% Occupancy (LFL) 87.4% 86.6%* 0.8% Occupancy 84.2% 86.6%* (2.4)% Rate psm (LFL) €6.50 €6.17* 5.3% Ra
Slide 14: Purchasing Power & Cost Control
Purchasing Power & Cost Control 14 ▪ Several longstanding national agreements with key suppliers in Germany ▪ Increased bulk purchasing power and continuing efficiencies of scale across Germany ▪ Several forward purchasing agreements in Germany and UK locking prices in until Dec 2023 ▪ A series of l
Slide 15: Rent Roll Movement - Germany
Rent Roll Movement - Germany 15 115 110 11.0 105 Annualised Rent Roll - €m 2.9 100 113.7 11.4 95 (10.2) 90 96.5* 2.1 85 80 31-Mar-21 Move Outs Capex Move-Ins Other Move-Ins Uplifts on Existing Tenants Acquisitions 31-Mar-22 Mar 2022 Year End Results * Excludes €0.7m of annualised rent roll relating
Slide 16: Acquisitions – Germany
Acquisitions – Germany 16 Total Investment SQM Annualised Rental Income Annualised NOI Site * Date Occupancy EPRA Net Initial Yield €m (k) €m €m Sirius Completed: Essen I May 21 10.7 14.7 0.8 0.7 80% 6.5% Öhringen Aug 21 9.0 18.0 0.0 (0.6) 0% (7.1)% Heiligenhaus Oct 21 14.2 45.1 1.4 1.1 77% 7.9% Fra
Slide 17: Potential of FY22 Acquisitions
Potential of FY22 Acquisitions 17 Business Plan 3 Yr Acquisition Potential Total Costs €201.9m €101.8m Valuation €303.7m 50% Gross Yield 6.5%* Gross Yield 6.5% €7.3m Rent Roll €12.3m Rent Roll €19.6m 59% NOI €8.9m €8.7m NOI €17.6m 98% Occupancy 62% Occupancy 89% 27% 3 Yr Returns €m Investment €m 38.
Slide 18: Like-for-Like Valuation Movement – Germany
Like-for-Like Valuation Movement – Germany 18 €m Portfolio Valuation Increases Existing Portfolio Book Value 31 Mar 22 1,600 38.6 €m As at 31 Mar 2021: 1,400 89.1 Gross Yield = 7.2% Existing Portfolio 1,474.9 1,200 Net Yield = 6.5% Acquisitions ** 162.0 1,474.9 As at 31 Mar 2022: 1,000 1,347.2 Gross
Slide 19: Portfolio Split - Germany
Portfolio Split - Germany Value Add & Mature Assets 19 Capital value Mar-21 Book value €m Rent roll €m* NOI €m Gross yield Net yield Occupancy* Rate psm* € Vacant space sqm psm € Value-Add 795.4 60.0 53.3 7.5% 6.7% 766 82.1% 6.06 179,735 Mature 551.8 36.5 34.9 6.6% 6.3% 1,054 95.4% 6.35 22,893 Other
Slide 20: Combined Capex Programme - Germany
Combined Capex Programme - Germany 20 Completed: 380.9k sqm €58.6m €24.3m Vacant space refurbished Invested Annualised rental income Budget Achieved to date Capex Investment Annualised Annualised Programme Investment Invest Rent Rate Investment Invest Rent Rate Progress Sqm Occupancy Occupancy €m ps
Slide 21: BizSpace - UK
BizSpace - UK 21 Mar 22 Nov 21 Change Book Value £382.2m £345.5m 10.6% Rent Roll 45.1m 41.9m 7.6% NOI £30.5m £27.8m 9.7% Gross Yield 11.8% 12.1% (0.3)% Net Yield 8.0% 8.0% - ▪ Capital Value psqft £88 (Nov-21 - £79) ▪ Occupancy 90.5%* (Nov-21 - 88.7%) ▪ Rate psqft £11.69 (Nov-21 - £10.98) ▪ Vacant Sp
Slide 22: Rent Roll Movement – UK
Rent Roll Movement – UK (£m) 22 45 1.8 (4.4) 5.8 40 35 30 Annualised Rent Roll - £m 25 45.1 41.9 20 15 10 5 0 30-Nov-21 Move-Outs Move-Ins Uplifts on Existing Tenants 31-Mar-22 Mar 2022 Year End Results
Slide 23: Disposal (UK) – Camberwell Lilford Business Centre
Disposal (UK) – Camberwell Lilford Business Centre 23 Sold at 36% premium to the last reported book value ▪ Lettable Area 34,700 sq ft ▪ Value upon Acquisition £8.25 m ▪ Value as at Mar-22 £11.75 m ▪ Occupancy 91% ▪ Sale Price £16.0 m ▪ Net Initial Yield c2% Sold at 94% premium to the value at acqui
Slide 24: FFO Ambition: Journey to €100m
FFO Ambition Journey to €100m FFO – Short Term 24 Previously communicated €100m FFO short term ambition within sight (9% increase from March 22 run rate ) 110 ▪ €5.4m impact of FY 22 €m acquisitions in Germany 100 1.0 2.3 1.8 2.2 ▪ €12.0m full year effect of 1.2 90 BizSpace 12.0 80 ▪ €3.5m contribut
Slide 25: FFO Ambition: Journey to €150m
FFO Ambition Journey to €150m FFO – Medium/Long Term 25 Increase FFO to €120m through execution of existing initiatives (20% increase from short term ambition) ▪ €4.6m contribution relating to €m 150 capex investment programmes 140 in Germany 30.0 130 3.0 120 ▪ €1.2m contribution from the let 5.3 up
Slide 26: Financing
Financing 26 €700m 2 Corporate bond issuances Mar 22 Mar 21 Unsecured Borrowings €750.0m €50.0m Secured Borrowings €245.6m €422.0m 1.4% €1.6bn Average cost of debt Unencumbered assets Total Borrowings €995.6m €472.0m Net LTV* 41.6% 31.4% Weighted average interest rate 1.4% 1.5% 4.3 Years Weighted av
Slide 27: Summary
Summary 27 ▪ PBT of €168.9m and total accounting return of 20.0% ▪ 6.4% increase in L4L rent roll in Germany and 7.6% in 4.5 months of ownership in the UK ▪ FFO growth of 22.5% to €74.6m and 16.1% increase in full year dividend to 4.41c ▪ 16% increase in NAV underpinned by 9.4% and 10.6% increase in
Slide 28: Outlook
Outlook 28 ▪ Post year end trading in line with expectations, driven by further transformative investment as well as ongoing on-shoring of production and supply chains by German & UK manufacturers ▪ Forward purchasing leading to pricing of some key cost lines being locked in until December 2023 ▪ Re
Slide 29: BizSpace
29 BIZSPACE Mar 2022 Year End Results
Slide 30: Diversified Portfolio - UK
Diversified Portfolio - UK Assets 30 Industrial Assets Office Buildings Mixed Use Assets Warehouse / Offices & Workshops Offices Workspace, Office & Storage SME’s & Large scale SME’s & Conventional & SME’s & Conventional & growing businesses workspace growing businesses flexible office spaces growin
Slide 31: Diversified Portfolio - UK: Usage & Tenants
Diversified Portfolio - UK Usage & Tenants 31 Usage Split by Revenue Tenant split by revenue 3,376 Tenants 2% 25% Office Top 100 0.8Yrs 56% Storage 31% 44% Next 900 Portfolio WALT 41% Workshop Remaining SME Other 1% 3.9Yrs Average Tenure No. of tenants @ Occupied sqft Annualised rent roll Rate psft
Slide 32: Organic Growth - UK
Organic Growth - UK 32 Site Mar 22 Nov 21 Change Rent Roll £45.1m £41.9m 7.6% Occupancy 90.5%* 88.7%* 1.8% Rate psft £11.69 £10.98 6.5% New Lettings 323,528sqft - - New Letting Rate psqft £18.04 - - Move-Outs Rate psqft £15.64 - - Move-Outs 282,037sqft - - Mar 2022 Year End Results * Consistent with
Slide 33: Like-for-Like Valuation Movement - UK
Like-for-Like Valuation Movement - UK 33 As at Nov 2021: Portfolio Valuation Increases £'m Gross Yield = 12.1% 400.0 Net Yield = 8.0% 11.2 Capital Value per sqft = £79 25.5 As at Mar 2022: 350.0 Gross Yield = 11.8% Net Yield = 8.0% 300.0 Capital Value per sqft = £88 Gross yield shift of (30) bps 250
Slide 34: Enquiries | Viewings | Sales - UK
Enquiries | Viewings | Sales - UK For the Period Nov 21 – Mar 22 34 Enquiries/Viewings/Sales Averages 2,500 160 Nov 21 – Mar 22 Enquiries 1,520 140 2,000 120 Viewings 350 Enquiries/Viewings 100 1,500 Sales 120 Sales 80 1,000 60 40 500 Conversion 23% 20 Enquiries Viewings 8% 0 0 Nov-21 Dec-21 Jan-22
Slide 35: Resilience - UK
Resilience - UK Cash Collection 35 Cash Collection Nov 21 to Mar 22 £'m 5.00 4.50 ▪ Experienced cash collection team 4.00 ▪ 99.6% cash collection success rate for the 4.5 3.50 month period 3.00 ▪ £19.5m invoiced net of VAT in period 2.50 2.00 ▪ £72k outstanding as at Mar 2022 1.50 ▪ 1 deferred payme
Slide 36: Appendices
Appendices 36 ▪ Titanium ▪ Financials – Geographically Split Appendix IV, pages 64 - 68 Appendix I, page 37 - 39 ▪ Total investment property value of €350.6m ▪ Consolidated income statement ▪ Financing ▪ Statement of financial position Appendix V, pages 69 - 72 ▪ Portfolio Diversity & Resilience - G
Slide 37: Appendix I: Financials Geographically Split
37 APPENDIX I FINANCIALS GEOGRAPHICALLY SPLIT Mar 2022 Year End Results
Slide 38: Consolidated Income Statement – Geographically Split
Financials – Consolidated Income Statement – Geographically Split 38 Germany UK Group Mar 22 Mar 22 Mar 22 €m €m €m Rental Income 108.0 14.8 122.8 Titanium income 6.7 - 6.7 Service charge irrecoverable costs (3.1) (0.7) (3.8) Non-recoverable maintenance (3.7) (0.9) (4.6) Net Operating Income 107.9 1
Slide 39: Statement of Financial Position – Geographically Split
Consolidated Statement of Financial Position – Geographically Split 39 Germany UK* Mar 22 Mar 22 Group Total €m €m €m Assets Investment properties (owned assets) 1,636.9 451.8 2,088.7 Investment properties (leased assets) 12.1 13.0 25.1 Investment in associate 68.4 - 68.4 Plant and equipment 6.5 3.2
Slide 40: Appendix II: Portfolio Diversification & Resilience - Germany
40 APPENDIX II PORTFOLIO DIVERSIFICATION & RESILIENCE - GERMANY Mar 2022 Year End Results
Slide 41: Diversified Portfolio – Germany
Diversified Portfolio – Germany Assets 41 Traditional Mixed-Use Modern Mixed-Used Out of Town Industrial Business Parks Business Parks Office Buildings International blue-chip Warehouse/ Workshop Quality assets corporations Office, Storage in secondary locations Large scale Long-term SME‘s + Retail
Slide 42: Diversified Portfolio – Germany: Usage & Tenants
Diversified Portfolio – Germany Usage & Tenants 42 Usage Split Tenant Split by Revenue 6,076 Tenants 7% 6% Office Top 50 Anchor 34% 38% Tenants Storage 55% SmartSpace SME Production 21% Tenants Smartspace 7% Other SME 2.9Yrs Other Tenants Portfolio WALT 32% No. of tenants Occupied Sqm Annualised ren
Slide 43: Property Valuations & Book Values – Germany
Property Valuations & Book Values – Germany 43 Book Value Annualised NOI Gross Net Capital Rate Vacant Space Mar 22 Occupancy €m * Rent Roll €m €m Yield Yield Value psm € psm € sqm Total Portfolio 1,636.9 113.7 102.6 6.9% 6.3% 885 84.2% 6.31 282,179 Other - - (1.1) - - - TOTAL 1,636.9 113.7 101.5 6.
Slide 44: Diversified Portfolio – Germany: Locations
Diversified Portfolio – Germany Locations 44 No. Of Total % of Rate Annualised Book Value Mar 22 Properties sqm Occupancy Portfolio Gross Yield psm € Rent €m €m ‘000’s By Rent Frankfurt 16 370.8 85.5% 6.72 26.5 23.3% 361.5 7.3% Berlin 4 103.3 97.6% 7.82 9.5 8.3% 162.4 5.8% Stuttgart 9 331.1 87.3% 4.
Slide 45: Completed Acquisitions – Germany
Completed Acquisitions – Germany 45 Essen I Rastatt Öhringen Neckartenzlingen Heiligenhaus Frankfurt III Essen II Erfurt Oberhausen Mar 2022 Year End Results
Slide 46: Diversified Products – Germany
Diversified Products – Germany SmartSpace 46 Annualised rent roll % of total Total Occupied Occupancy Rate per sqm (excl. SmartSpace product type (ex. service charge) annualised SmSp sqm sqm % service charge) € €’000 rent roll First Choice Office 5,117 3,156 62% 838 11% 22.13 SMSP Office 32,031 23,8
Slide 47: Enquiries & Sales – Germany
Enquiries & Sales – Germany 12 Month Comparison 47 12 Month Enquiries Comparison to Apr 21/Mar 22 2,000 1,500 No. of enquiries 1,000 ▪ Stable year on year increase in enquiries in the period 500 0 ▪ 1,348 average enquiries per month in the period Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar No. o
Slide 48: Resilience – Germany
Resilience – Germany Cash Collection 48 Cash collection - 12 Mths to March 22 ▪ Experienced cash collection team 14.00 ▪ 98.4% cash collection success rate for the 12.00 period 10.00 ▪ 98.8% 12 month trailing cash collection success rate 8.00 mio € ▪ €163.0m invoiced net of VAT in period 6.00 4.00 ▪
Slide 49: Enquiries | Viewings | Sales – Germany
Enquiries | Viewings | Sales – Germany Year on Year Comparison 49 enquiries 1,750 1,435 1,421 1,495 1,467 Average for 12 Months ENQUIRIES 1,387 1,354 1,333 1,341 1,305 1,324 Apr 21 – Mar 22 Increase on 12 month 1,235 1,250 1,353 1,351 1,183 1,376 1,370 period last year 1,341 1,241 1,268 1,176 1,348
Slide 50: Lettings & Renewals Performance – Germany
Lettings & Renewals Performance – Germany 50 New Lettings Renewal (sqm) Rate* To Mar 18 160,133 75% To Mar 19 170,866 66% To Mar 20 162,607 78% To Mar 21 161,065 71% To Mar 22 162,102 74% ▪ Platform selling between 160k–171k sqm of new lettings per annum ▪ Average tenant income retention rates of mo
Slide 51: Portfolio Up For Renewal Analysis to Mar 23 - Germany
Portfolio Up For Renewal Analysis to Mar 23* - Germany 51 Up for Renewal (Sqm, Income & No. Tenants) 2022/23 Thousands € No. Tenants 450 1,000 400 900 800 350 700 300 600 250 500 200 400 150 300 100 200 50 100 0 0 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TO
Slide 52: Pricing Power
Pricing Power 52 ▪ Attractively priced in second quartile, typically 25%-30% discounted to next best alternative ▪ Affordable average rates compared to other business costs ▪ Relatively short lease lengths supporting increases in rent roll ▪ Flexible products attracting premiums comparative to core
Slide 53: Appendix III: Portfolio Growth
53 APPENDIX III PORTFOLIO GROWTH Mar 2022 Year End Results
Slide 54: New Acquisition Capex Programme - Germany
New Acquisition Capex Programme - Germany 54 Completed in period: 24.8k sqm €3.5m €1.9m Vacant space refurbished in period Invested in period Annualised rental income Budget Achieved to date Capex Investment Annualised Annualised Programme Investment Invest Rent Rate Investment Invest Rent Rate Prog
Slide 55: Growth - Germany
Growth - Germany 55 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18^ Mar-17 Mar-16 Portfolio book value (€m) 1,636.9 1,347.20 1,186.20 1,132.50 967.3 823.3 687.4 Rent roll* (€m) 113.7 97.2 90.3 87.8 79.5 71.0 60.5 NOI (€m) 101.5 87.7 78.0 76.7 66.4 61.4 52.5 FFO (€m) 74.6 60.9 55.7 48.4 38.4 37.0 26.7 Gross yiel
Slide 56: Total Accounting Returns
Total Accounting Returns 56 Total Accounting Returns 17.0% 19.3% 13.1% 19.5% 20.0% ▪ Consistent double-digit returns 20.0% ▪ Average accounting return over 5 years of 17.8% per annum Total Accounting Returns % 15.0% ▪ 1/3 of return generated through dividends 14.4% 15.0% 15.7% with 2/3 coming throug
Slide 57: Adjusted NAV per share Growth (Mar-15 to Mar-22)
Adjusted NAV per share Growth (Mar-15 to Mar-22) 57 48.22 (18.59) €966.7m Increase in net asset value 98.80 €567.4m 28.95 Valuation gains (7.29) 47.51 €324.5m Recurring profit €138.8m Dividends paid Mar 2022 Year End Results * Other includes €315.2m relating to capital raises, €10.5m relating to mov
Slide 58: Valuation Growth (Mar-15 to Mar-22)
Valuation Growth (Mar-15 to Mar-22) 58 €m Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Annualised Rent Roll €m 50.0 60.5 71.0 79.5 87.8 90.3 97.2 113.7 Gross Yield 9.2% 8.8% 8.6% 8.2% 7.8% 7.6% 7.2% 6.9% Mar 2022 Year End Results
Slide 59: Acquisitions Owned >1 Yr
Acquisitions Owned >1 Yr Returns Achieved 59 Acquisition Mar-22 42 Assets acquired & owned for > 1 Yr Total Cost €582.1m Valuation €909.7m €327.6m 56% Gross Yield 8.8%* Gross Yield 7.3% €18.6m Rent Roll €47.8m 39% Rent Roll €66.4m 4.5 Yrs NOI €38.8m €22.1m 57% NOI €60.9m Weighted average time asset
Slide 60: Acquisitions Owned >1yr
Acquisitions Owned >1yr Growth 60 Total Acq. Mar 22 Valuation Acq. Rental Mar 22 Annualised Annualised Rental Acq. Mar 22 Occupancy Capex Since Financial Year Cost € Valuation € Increase Income € Rental Income € Income Increase € Occupancy Occupancy Increase Acq. €m 2014/15 70.9 153.5 82.6 6.4 9.1 2
Slide 61: Accretive Asset Recycling since Sep 14
Accretive Asset Recycling since Sep 14 61 Acquisitions (52) Mar-22 Sep 14 to Mar 22 Core Disposals (20) Sep 14 to Mar 22 Total Cost €744.7m Valuation €1,071.7m Uplift 44% Value €288.2m Disposal Price €325.0m Gross Yield 8.3%* Gross Yield 7.2% Movement (1.2)% Gross Yield 7.1% Uplift 13% Rent Roll €58
Slide 62: Vacant Space Analysis
Vacant Space Analysis 62 Mar 22 Ending Position 84% Total space – sqm 1.8m Occupancy Occupied space – sqm 1.5m Vacant space – sqm 0.3m Mar 22 Capex ERV (post invest) % of Total space Sqm Sub optimal space €m €m Acquisition capex programme 4% 64,145 16.4 4.5 Other Sales Capex 2% 27,300 6.4 2.4 Total
Slide 63: Lease Escalations – Germany
Lease Escalations – Germany 63 Rent Roll – Mar 22 €113.7m Escalation Breakdown ▪ 32% of rent roll subject to contractual uplifts within the next 12 months Uplifts 32% ▪ 41% of rent roll subject to inflation-based indexations Indexation 41% ▪ Total annual escalations estimated at 2% Up for renewal 20
Slide 64: Appendix IV: Titanium
64 APPENDIX IV TITANIUM Mar 2022 Year End Results
Slide 65: Titanium – Sirius & AXA IM Alts
Titanium – Sirius & AXA IM Alts 65 ▪ AXA IM Alts – trusted partner & 65% equity holder of Titanium ▪ Sirius Real Estate – asset manager & 35% equity holder of Titanium ▪ €168m seed portfolio sold into Titanium by Sirius in August 2019 ▪ Targeting stabilised assets > €45.0m with attractive running yi
Slide 66: Titanium Balance Sheet
Titanium Balance Sheet 66 Titanium Sirius Balance €350.6m Sirius 35% Share Sheet Combined Investment property value €m €m €m Investment property 122.4 2,088.7 2,211.1 Other assets 0.8 78.8 79.6 38.8% Cash 6.2 151.0 157.2 Net LTV Total assets 129.4 2,318.5 2,447.9 Bank loans (51.9) (981.5) (1,033.4)
Slide 67: Titanium Organic Growth – Rental Income Analysis
Titanium Organic Growth – Rental Income Analysis * 67 Site Mar 22 Mar 21 Change Rent Roll €21.5m €15.1m 42.4% Rent Roll (Disposals) - - - Rent Roll (Acquisitions) €5.5m - - Rent Roll (LFL) €16.0m €15.1m 6.0% Occupancy (LFL) 88.6% 87.2% 1.4% Occupancy 89.3% 87.2% 2.1% Rate psm (LFL) €6.51 €6.22 4.7%
Slide 68: Titanium Income Returns
Titanium Income Returns 68 March 22 Invested equity €54.1m Profit after tax €5.1m Net Management fees €2.4m Total income €7.5m Return on equity 13.9% ▪ Share of profit through 35% equity ownership ▪ Management fees generated from the provision of a range of property related services ▪ Attractive inc
Slide 69: Appendix V: Financing
69 APPENDIX V FINANCING Mar 2022 Year End Results
Slide 70: Debt Maturity
Debt Maturity 70 4.3 Years Corporate Bond II € 300.0m Weighted average maturity Corporate Bond I € 400.0m Schuldschein - Tranche 4 € 10.0m Sparkasse € 15.0m € 5.0m €15.0m Schuldschein - Tranche 3 Scheduled repayments Deutsche Pfandbriefbank AG € 59.0m within 1 year BerlinHyp € 174.0m Schuldschein -
Slide 71: Debt Movement
Debt Movement 71 €700.0 million € 169.5 m €(169.5)m 1,000.0 Corporate Bond issuances € 300.0 m €(111.6)m 800.0 €(5.8)m € (59.1)m € 400.0 m 600.0 €340.2 million 995.6 € 995.6 m Secured debt repayment 400.0 € 472.0 m 200.0 75.3 % - Opening Balance Corporate Bond I Repayment SEB Repayment Amortisation
Slide 72: Covenants
Covenants 72 Loan Expiry Secured Facility Covenants Date Mar 22 Position Hard Covenant DSCR* DYR* LTV** ICR DSCR DYR LTV Berlin Hyp AG 3.17 x n/a 52.6% n/a 1.40x n/a 65.0% Oct-23 Sparkasse 3.26 x n/a n/a n/a 2.00x n/a n/a Feb-25 Deutsche Pfandbriefbank AG n/a 14.8% 46.0% n/a n/a 8.0% 57.5% Dec-23 Lo
Slide 73: Appendix VI: The Sirius Platform
73 APPENDIX VI THE SIRIUS PLATFORM Mar 2022 Year End Results
Slide 74: Integrated Operating Platform
Integrated Operating Platform 74 Total No. Employees Acquisitions Team Acquire assets 279 3 Service Charge Team Marketing Team Cost recovery Lead generation 12 10 Finance, IT, HR, Legal Asset & Property Mgt. Execution & support Sales Inbound Team Strategic & operational 107 Lead conversion to viewin
Slide 75: Marketing & Sales Success Factors
Marketing & Sales Success Factors 75 Marketing ▪ Fully integrated central in-house team of digital experts Sirius data Sirius develops Sirius is not giving ▪ Sophisticated data-driven online Marketing: 85% of all enquiries intelligence is 3 models to capture knowledge away generated through digital
Slide 76: Rental Movement
Rental Movement 7 Years 76 €m 140 130 (22.7) 16.8 120 56.1 110 100 90 80 12.2 70 130.5 18.1 60 113.7 50 40 30 50.0 20 10 0 31 Mar 15 Move Ins & Move Committed Increases Acquisitions Disposal 31 Mar 22 ERV Capex Invest & Potential Rent Roll Outs ERV Lettable Space Mar 2022 Year End Results
Slide 77: Service Charge Recovery
Service Charge Recovery 77 100% 95% 90% ▪ Dedicated and experienced in-house SC team 85% ▪ Total service charge costs circa €55.6m ▪ Consistently recovering in excess of occupancy 80% due to specialist techniques ▪ €5m+ annual recurring benefit versus market 75% 70% Mar 15 Mar 16 Mar 17 Mar 18 Mar 1
Slide 78: Appendix VII: Case Studies
78 APPENDIX VII CASE STUDIES Mar 2022 Year End Results
Slide 79: Case Study: Alzenau
Case Study Alzenau 79 Site Plan & Impression Mar 2022 Year End Results
Slide 80: Case Study: Alzenau Property Overview
Case Study Alzenau 80 Property Overview ▪ Well-located mixed-use business park located to the east of Frankfurt acquired in December 2019 totalling 59,925sqm of lettable space including 3,897 sqm of vacant space ▪ High-quality and modern business park which houses two long-term anchor tenants ▪ Fina
Slide 81: Case Study: Alzenau Financials & Returns
Case Study Alzenau 81 Financials & Returns To Date 2 Year Returns to Mar Business Plan Total Expected Returns Analysis 24 Acquisition Actual Target to Improvement to €m Dec 19 Mar 22 Mar 24 Mar 24 Retained Profit *** 8.2 Total Cost/Valuation €44.5m €58.8m €61.5m €17.0m Valuation Increase 14.3 Total
Slide 82: Case Study: Buxtehude
Case Study Buxtehude 82 Site Plan & Impression Mar 2022 Year End Results
Slide 83: Case Study: Buxtehude Property Overview
Case Study Buxtehude 83 Property Overview ▪ Excellent location fully vacant site in a well-established industrial area near Hamburg ▪ Former bottling plant providing a value-add opportunity through 28,168 sqm of vacant space recognising upgrade and a targeted sales and marketing plan ▪ Fully equity
Slide 84: Case Study: Buxtehude Financials & Returns
Case Study Buxtehude 84 Financials & Returns To Date 5Yr Expected Returns Business Plan Total Expected Returns Analysis to Mar 24 Acquisition Actual Target to Improvement to €m May19 Mar 22 Mar 24 Mar 24 Retained Profit *** 2.7 Total Cost/Valuation €8.7m €14.2m €18.6m €9.9m Valuation Increase 9.9 To
Slide 85: Appendix VIII: Share Register
85 APPENDIX VIII SHARE REGISTER Mar 2022 Year End Results
Slide 86: Share Register | Mar 2022
Share Register | Mar 2022 Top 10 Shareholders 86 Top 10 Shareholders Shares (m) % Holding Aberdeen Standard Investments 142.7 12.2% BlackRock 116.6 10.0% Cohen & Steers 64.3 5.5% Public Investment Corporation (PIC) 49.2 4.2% Vanguard Group 48.7 4.2% Louis Norval 29.9 2.6% BMO Global Asset Management
Slide 87: Disclaimer
Disclaimer 87 This presentation may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of Sirius Real Estate Limited (“Sirius”). Such statements and forecasts involve risk and uncertainty because they a